The tourism industry was one of the first to take a massive hit earlier this year following the global lockdown and travel restrictions imposed in response to the Covid-19 pandemic.
In 2019, it accounted for a healthy 10 per cent of the global gross domestic product. In contrast, US management consultancy McKinsey & Company estimated this year that tourist arrival figures worldwide are expected to plummet between 60 to 80 per cent, with spending in the tourism sector unlikely to return to pre-pandemic levels until 2024.
According to the UN’s World Travel Organisation, the world witnessed a loss of 440 million international arrivals that wiped out $460 billion (Dh1.689 trillion) in export revenue in the first half of 2020. That is almost five times the loss in international travel revenues recorded during the 2008 global financial crisis.
Over the past month or so, restrictions have been eased in nearly 50 per cent of the world’s travel destinations. Although there are new safety measures in place that alter the travel experience considerably, we must see this as an opportunity to inject resources into the travel sector, in order to jumpstart economic activity and begin the slow process of recovering the massive losses.
While to an extent every nation benefits from travel and tourism, the GCC region has rapidly grown its travel sector in recent decades to diversify its economy and make it less reliant on oil.
The tourism offerings in the Arab region are a jewel in the crown of the global travel sector. We offer a variety of cultural experiences, a connection to nature, and a host of retail and leisure options for travellers seeking an enriching escape from their daily lives.
1. Cool down at Yas Waterworld - the waterpark has reopened with safety measures in place. Courtesy Yas Waterworld
2. Sail a speedboat through the Abu Dhabi mangroves. Courtesy Rhino Rides Abu Dhabi
3. Take an early morning swim with horses. Courtesy Dhabian Equestrian Club
4. Go shooting at Al Forsan International Sports Resort.
5. Connect with nature and take in the views at the Fossil Dunes. Courtesy Flickr/ Robert Haandrikman
6. Take a night-time kayak tour of Louvre Abu Dhabi.
7. Scale the world's tallest indoor climbing wall at Clymb on Yas Island.
8. Spend an afternoon bowling at Zayed Sports City in Abu Dhabi.
9. Take a day trip to Al Maya Island. Courtesy Al Maya Island
10. Watch the sun set over the city from Observation Deck at 300. Courtesy Jumeirah at Etihad Towers
11. Drive to Al Quaa and picnic under a starlit sky, with no light pollution and possible Milky Way sightings. Courtesy Samy Al Olabi
Notably, now more than ever, in the aftermath of the Covid-19 outbreak and the ensuing global lockdowns and restrictions, people are keen to unwind and take much-needed respite from the unprecedented stress they continue to experience in their everyday lives.
Studies have indicated numerous benefits of travel: it boosts both physical and mental health, contributes to greater well-being, increases stamina and productivity, decreases burnout and, in the long run, even enhances sleep patterns.
GCC countries have come a long way in the past few decades... this is not the first time we have faced challenges, and we will emerge from this too, more resilient than ever
Historically, some of the world’s most influential and profitable brands were born from the inclination to elevate society. One of the most remarkable success stories is that of Walt Disney, who was not deterred by the Great Depression when it began in 1929.
Instead, he found an opportunity to bring joy into people’s lives through sharing his craft. His perseverance, optimism and belief in the arts during those challenging years gave us beloved entertainment that continues to enchant consumers – be it through films, TV shows, merchandise or amusement parks.
Similarly, we need to look inwards and revisit our greatest strengths that could potentially restart our economies after the setbacks of this year.
Tourists visit a cave at Ain Razat, a water spring in Salalah, Dhofar province, Oman, August 2016. Reuters
Across sectors, smaller operators, family businesses and small and medium enterprises have all been hit hard. This is a good time to support them, as a positive step in rebuilding our economies to suit the needs and aspirations of potential guests.
Of course, in an era of social distancing and staying at home, we need to focus on tourists from our own countries, within the region, as well as globally.
A traditional boat moored in the port of Mutrah in the Omani capital Muscat on September 18, 2020. AFP
Not unexpectedly, people are looking for short getaways close to home that do not require the added expense and stress of air travel. Staycations are a quick solution to the humdrum of everyday lives. Stakeholders in the travel industry everywhere would do well to offer customers a host of options within or close to their cities.
Downtown Dubai. Getty
Businesses in the hospitality and leisure sectors in and around metropolises can tailor packages to suit the interests and needs of residents and encourage them to consider taking breaks.
Tourism boards across the region can co-ordinate their efforts to provide visitors from neighbouring countries access to attractive offerings.
By pooling resources, we can create bundle deals and incentives that encourage the safe movement and travel of residents who are keen to enjoy short breaks close to home.
In addition, the government agencies and businesses in the tourism sector need to work closely to ensure that offerings are tailored to suit the current climate and marketed to relevant audiences.
Although 2020 has brought with it a series of setbacks, we must not lose hope. We must remember that the GCC countries have come a long way in the past few decades. They have developed rapidly and built world-class cities and knowledge-based economies, elevating themselves among the world’s most developed nations.
This is not the first time we have faced challenges. In the past, we have emerged from economic crises more resilient than ever. This one is no exception.
Our region’s tourism sector has been an integral component of our success story. There is no doubt that with strategic planning and the right resources, we can bring our offerings back into the global spotlight and, most importantly, lead our economic recovery.
Mohammed Alardhi is executive chairman of Investcorp and chairman of Bank Sohar, and was the longest-serving Omani head of the Royal Air Force of Oman
Tamkeen's offering
Option 1: 70% in year 1, 50% in year 2, 30% in year 3
Option 2: 50% across three years
Option 3: 30% across five years
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
INFO
What: DP World Tour Championship When: November 21-24 Where: Jumeirah Golf Estates, Dubai Tickets:www.ticketmaster.ae.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Game Of Thrones Season Seven: A Bluffers Guide
Want to sound on message about the biggest show on television without actually watching it? Best not to get locked into the labyrinthine tales of revenge and royalty: as Isaac Hempstead Wright put it, all you really need to know from now on is that there’s going to be a huge fight between humans and the armies of undead White Walkers.
The season ended with a dragon captured by the Night King blowing apart the huge wall of ice that separates the human world from its less appealing counterpart. Not that some of the humans in Westeros have been particularly appealing, either.
Anyway, the White Walkers are now free to cause any kind of havoc they wish, and as Liam Cunningham told us: “Westeros may be zombie land after the Night King has finished.” If the various human factions don’t put aside their differences in season 8, we could be looking at The Walking Dead: The Medieval Years.
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE SPECS
2020 Toyota Corolla Hybrid LE
Engine: 1.8 litre combined with 16-volt electric motors
Transmission: Automatic with manual shifting mode
Power: 121hp
Torque: 142Nm
Price: Dh95,900
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
The biog
Name: Salem Alkarbi
Age: 32
Favourite Al Wasl player: Alexandre Oliveira
First started supporting Al Wasl: 7
Biggest rival: Al Nasr
The essentials
What: Emirates Airline Festival of Literature
When: Friday until March 9
Where: All main sessions are held in the InterContinental Dubai Festival City
Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.
Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.
Kopa Trophy (Best player under 21 – Men’s) Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s) Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year Sarina Wiegman (England)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
South Africa: Faf du Plessis (c), Hashim Amla, Quinton de Kock (w), JP Duminy, Imran Tahir, Aiden Markram, David Miller, Lungi Ngidi, Anrich Nortje, Andile Phehlukwayo, Dwaine Pretorius, Kagiso Rabada, Tabraiz Shamsi, Dale Steyn, Rassie van der Dussen.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
